67th Legislature HB 632 AN ACT IMPLEMENTING THE …67th Legislature HB 632 - 3 - Authorized Print...

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67th Legislature HB 632 - 1 - Authorized Print Version HB 632 ENROLLED BILL AN ACT IMPLEMENTING THE AMERICAN RESCUE PLAN ACT; PROVIDING APPROPRIATIONS AND ALLOCATIONS OF FEDERAL FUNDS AND OTHER FUNDS AVAILABLE BECAUSE OF THE RECEIPT OF FEDERAL FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2021; ALLOWING APPROPRIATIONS TO CONTINUE INTO THE 2023 AND 2025 BIENNIUMS; PROVIDING CONDITIONS AND RESTRICTIONS ON THE USE OF FUNDS; CREATING ADVISORY COMMISSIONS RELATED TO INFRASTRUCTURE, COMMUNICATIONS, ECONOMIC TRANSFORMATION AND STABILIZATION AND WORKFORCE DEVELOPMENT, AND HEALTH; PROVIDING DEADLINES AND OTHER CONDITIONS RELATED TO THE GRANT PROCESS; REQUIRING THE USE OF MATCHING FUNDS FOR CERTAIN GRANTS; PROVIDING FOR A TECHNICAL ASSISTANCE TEAM TO ASSIST LOCAL GOVERNMENTS IN THE GRANT PROCESS; PROVIDING FOR FUNDING FOR STATE CAPITAL PROJECTS AND GRANTS FOR WATER AND SEWER INFRASTRUCTURE PROJECTS; PROVIDING MINIMUM ALLOCATION GRANTS TO LOCAL GOVERNMENTS FOR QUALIFYING PROJECTS; PROVIDING FOR A GRANT PROCESS FOR ECONOMIC TRANSFORMATION AND STABILIZATION PROJECTS AND WORKFORCE DEVELOPMENT; PROVIDING GRANTS TO REGIONAL WATER AUTHORITIES; REQUIRING PERFORMANCE MEASURES AND REPORTING ON PROJECTS; PROVIDING COORDINATION INSTRUCTIONS TO FUND QUALIFYING LONG-RANGE PROJECTS WITH FEDERAL FUNDS; PROVIDING THE EXECUTIVE THE AUTHORITY TO MODIFY AND REPORT MODIFICATIONS TO APPROPRIATIONS AND PARAMETERS OF PROGRAMS TO THE LEGISLATIVE FINANCE COMMITTEE; PROVIDING FOR A REDUCTION TO CERTAIN GRANT AWARDS TO LOCAL GOVERNMENTS BASED ON HEALTH REGULATIONS THAT ARE MORE STRICT THAN THOSE OF THE STATE; PROVIDING FOR ADMINISTRATION AND AUDIT COSTS; ESTABLISHING EDUCATIONAL MAINTENANCE OF EFFORT AND EQUITY PAYMENTS AND PARAMETERS FOR THEIR USE; PROHIBITING THE USE OF AMERICAN RESCUE PLAN ACT FUNDS FOR LOBBYING ACTIVITIES; PROVIDING RULEMAKING AUTHORITY; AMENDING SECTION 2-17-603, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.

Transcript of 67th Legislature HB 632 AN ACT IMPLEMENTING THE …67th Legislature HB 632 - 3 - Authorized Print...

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AN ACT IMPLEMENTING THE AMERICAN RESCUE PLAN ACT; PROVIDING APPROPRIATIONS AND

ALLOCATIONS OF FEDERAL FUNDS AND OTHER FUNDS AVAILABLE BECAUSE OF THE RECEIPT OF

FEDERAL FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2021; ALLOWING APPROPRIATIONS TO

CONTINUE INTO THE 2023 AND 2025 BIENNIUMS; PROVIDING CONDITIONS AND RESTRICTIONS ON

THE USE OF FUNDS; CREATING ADVISORY COMMISSIONS RELATED TO INFRASTRUCTURE,

COMMUNICATIONS, ECONOMIC TRANSFORMATION AND STABILIZATION AND WORKFORCE

DEVELOPMENT, AND HEALTH; PROVIDING DEADLINES AND OTHER CONDITIONS RELATED TO THE

GRANT PROCESS; REQUIRING THE USE OF MATCHING FUNDS FOR CERTAIN GRANTS; PROVIDING

FOR A TECHNICAL ASSISTANCE TEAM TO ASSIST LOCAL GOVERNMENTS IN THE GRANT PROCESS;

PROVIDING FOR FUNDING FOR STATE CAPITAL PROJECTS AND GRANTS FOR WATER AND SEWER

INFRASTRUCTURE PROJECTS; PROVIDING MINIMUM ALLOCATION GRANTS TO LOCAL

GOVERNMENTS FOR QUALIFYING PROJECTS; PROVIDING FOR A GRANT PROCESS FOR ECONOMIC

TRANSFORMATION AND STABILIZATION PROJECTS AND WORKFORCE DEVELOPMENT; PROVIDING

GRANTS TO REGIONAL WATER AUTHORITIES; REQUIRING PERFORMANCE MEASURES AND

REPORTING ON PROJECTS; PROVIDING COORDINATION INSTRUCTIONS TO FUND QUALIFYING

LONG-RANGE PROJECTS WITH FEDERAL FUNDS; PROVIDING THE EXECUTIVE THE AUTHORITY TO

MODIFY AND REPORT MODIFICATIONS TO APPROPRIATIONS AND PARAMETERS OF PROGRAMS TO

THE LEGISLATIVE FINANCE COMMITTEE; PROVIDING FOR A REDUCTION TO CERTAIN GRANT

AWARDS TO LOCAL GOVERNMENTS BASED ON HEALTH REGULATIONS THAT ARE MORE STRICT

THAN THOSE OF THE STATE; PROVIDING FOR ADMINISTRATION AND AUDIT COSTS; ESTABLISHING

EDUCATIONAL MAINTENANCE OF EFFORT AND EQUITY PAYMENTS AND PARAMETERS FOR THEIR

USE; PROHIBITING THE USE OF AMERICAN RESCUE PLAN ACT FUNDS FOR LOBBYING ACTIVITIES;

PROVIDING RULEMAKING AUTHORITY; AMENDING SECTION 2-17-603, MCA; AND PROVIDING AN

IMMEDIATE EFFECTIVE DATE.

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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

(Refer to Introduced Bill)

Strike everything after the enacting clause and insert:

Section 1. Infrastructure advisory commission. (1) There is an American Rescue Plan

infrastructure advisory commission.

(2) The commission consists of nine members, who must be appointed as follows:

(a) three senators, two from the majority party and one from the minority party, appointed by the senate

president;

(b) three representatives, two from the majority party and one from the minority party, appointed by the

speaker of the house; and

(c) three members appointed by the governor.

(3) The commission shall review applications for funding for state capital projects and state and local

government water and sewer infrastructure projects and shall provide recommendations to the executive on

which projects should be funded. Projects approved by the 67th legislature for funding in House Bill No. 5, 6, 7,

11, or 14 are not submitted to the commission.

(4) Appointed members of the commission must be compensated and receive travel expenses as

provided for in 2-15-124 for each day in attendance at commission meetings or in the performance of any duty

or service as a commission member.

(5) The department of natural resources and conservation shall serve as lead staff with the

departments of administration and commerce assisting.

(6) Funding for the commission is allocated from the administrative costs allowed in [section 3].

(7) The commission shall hold its first meeting no later than June 11, 2021.

(8) The commission shall set its future meeting dates.

(9) The commission shall elect a chair from the legislative branch and a vice chair from the executive

branch.

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Section 2. Appropriation for water and sewer infrastructure projects -- matching funds. (1)

There are federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2,

appropriated to the office of budget and program planning for state and local water and sewer infrastructure

grants as follows:

Amount ARPA Section

462,689,925 602

(2) For any water or sewer infrastructure grant awarded to a local government with these funds, a local

government must provide matching funds.

(3) For the purposes of [this act], "local government" means any city, county, consolidated city-county,

school district, or other political subdivision or local government body of the state, including an authority as

defined in 75-6-304, water district, sewer district, irrigation district, water users association, conservation

district, or tribal government.

(4) For the purposes of [this act], state water and sewer infrastructure projects includes projects for

state-owned buildings and facilities and associated infrastructure, as well as within the Montana university

system, including community colleges in the state.

(5) References to "ARPA Section" mean references to section 9901 of the American Rescue Plan Act

of 2021, Public Law 117-2, which amends Title VI of the Social Security Act to include section 602.

(6) Funds appropriated under this section that are not otherwise allocated are allocated to the office of

budget and program planning to provide grants pursuant to [section 3].

Section 3. Competitive grant program. (1) For the first round of grants, state and local

governments shall submit grant requests and supporting materials, including the amount of matching funds

available for water and sewer infrastructure projects, to the department of natural resources and conservation

by July 15, 2021, in order to be eligible for funding under [section 2]. Applicants shall certify that each project

submitted is a necessary investment in water or sewer infrastructure as defined in the American Rescue Plan

Act and all applicable guidance. Subsequent submissions, if any, will be due by the dates established by the

commission. The agency will review grant applications, rank projects, and issue a list of recommended projects

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to the advisory commission by August 15, 2021.

(2) The advisory commission shall review the lists of recommended water and sewer infrastructure

projects and issue a list of recommended projects to the executive by the dates established by the commission.

(3) The department of natural resources and conservation shall certify that each project submitted is a

necessary investment in water and sewer infrastructure as defined in the American Rescue Plan Act and all

applicable guidance.

(4) The department of natural resources and conservation is authorized to present additional rounds

of grant proposals to the commission as needed.

(5) For local government water and sewer infrastructure grants, preference may also be given to

projects that provide a higher match rate.

(6) The advisory commission shall certify that each project submitted is a necessary investment in

water and sewer infrastructure as defined in the American Rescue Plan Act and all applicable guidance.

(7) The recommendations of the advisory commission must be considered by the governor and

reviewed to comply with the American Rescue Plan Act and all applicable guidance. The governor may modify

recommendations and shall provide the list of approved projects to the advisory commission and to the

legislative finance committee by the dates established by the governor. If the governor modifies the list of

recommended projects submitted by the commission, the department of natural resources and conservation

shall report and explain the changes to the advisory commissions and the legislative finance committee at its

next scheduled meeting.

(8) If the governor later determines that a project cannot be completed, the governor may authorize a

different project and provide a report to the advisory commission and the legislative finance committee. If the

governor determines at any time that a project is identified not to be eligible based on the American Rescue

Plan Act and all applicable guidance and, if completed, may result in a reduction in funds from the American

Rescue Plan Act or require the state to repay or refund money to the federal government pursuant to the

American Rescue Plan Act, the governor may authorize a different project and provide a report to the advisory

commission and the legislative finance committee.

(9) No project may receive more than $25 million in grant proceeds from this section.

(10) Up to 2.5% of the funds allocated in [section 2(6)] may be allocated for administrative costs.

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Section 4. Minimum allocation grants to local governments. (1) The amount of $150 million of the

coronavirus state fiscal recovery funds appropriated in [section 2] must be used to provide minimum allocation

grants to local governments for water and sewer infrastructure projects eligible for funding under the American

Rescue Plan Act.

(2) The amount a local government is eligible to receive in water and sewer infrastructure grants under

this section is in the same proportion and using the same ratios provided for in 15-70-101(2)(b), (2)(c), and (3).

(3) (a) To receive a grant under this section, a local government shall submit an application for a

qualifying water or sewer infrastructure project and pledge matching funds.

(b) A qualifying water or sewer infrastructure project is a project that complies with the uses authorized

for the coronavirus state fiscal recovery funds.

(c) The local government shall pledge the lesser of:

(i) one-to-one matching funds; or

(ii) 25% of the amount that the local government received in coronavirus local fiscal recovery funds

provided for in the American Rescue Plan Act.

(d) A local government may use coronavirus local fiscal recovery funds as matching funds.

(4) Grant funds not applied for and awarded or in a pending status by January 1, 2023, are transferred

to the competitive grant program administered by the department of natural resources and conservation for

distribution through the competitive grant program established in [section 3].

Section 5. Grants to regional water authorities -- matching funds -- uses. (1) Of the appropriation

made in [section 2] of coronavirus state fiscal recovery funds, $10 million is allocated to the department of

natural resources and conservation to provide each regional water authority a grant of $2.5 million.

(2) For a grant under this section, a regional water authority must provide one-to-one matching funds.

(3) The regional water authority may use grant funds and loans secured by bonds to serve as

matching funds for federal grants.

Section 6. Technical assistance team -- grant application and engineering assistance. (1) The

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department of commerce shall assemble a technical assistance team to notify local governments, with an

emphasis on rural local governments, of the funding opportunities provided for in this bill related to water and

sewer infrastructure projects.

(2) The technical assistance team shall also assist local governments in the application process and

offer limited engineering assistance.

(3) The department may hire modified FTE or contract to create the technical assistance team.

(4) There is allocated $750,000 from the funds appropriated in [section 2] for the technical assistance

team.

Section 7. Appropriation for capital projects. (1) There are federal funds received pursuant to the

American Rescue Plan Act of 2021, Public Law 117-2, appropriated to the office of budget and program

planning for state capital projects as follows:

Amount ARPA Section

119,300,000 604

(2) For the purposes of [this act], "state capital projects" includes projects for state-owned buildings

and facilities and associated infrastructure as well as within the Montana university system, including

community colleges in the state. Project requests and supporting materials must be submitted to the

department of administration in the manner prescribed by the department. Each applicant shall certify that each

project submitted is a qualifying capital project as defined in the American Rescue Plan Act and all applicable

guidance.

(3) The department of administration shall submit a list of recommended state capital projects to the

advisory commission. If properly submitted and certified by the department of justice, the list must contain up to

$1 million for Freezer, Morgue and Refrigeration Space, and up to $1 million for Crime Lab Facility Space at the

department of justice, if eligible.

(4) The department of administration shall certify that each project submitted is a qualifying capital

project as defined in the American Rescue Plan Act and all applicable guidance.

(5) The advisory commission shall review the lists of recommended capital projects and issue a list of

recommended projects to the executive. The commission shall certify that each project submitted is a qualifying

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capital project as defined in the American Rescue Plan Act and all applicable guidance.

(6) The department of administration is authorized to present additional rounds of proposals to the

commission as needed.

(7) In preparing recommendations for capital projects, preference must be given to projects that are

geographically dispersed throughout the state,. Projects must carry out critical capital projects directly enabling

work, education, or health monitoring, including remote options, in response to the public health emergency

with respect to COVID-19.

(8) The recommendations of the advisory commission must be considered by the governor and

reviewed to comply with the American Rescue Plan Act and all applicable guidance. The governor may modify

recommendations and shall provide the list of approved projects to the infrastructure advisory commission and

the legislative finance committee. If the governor modifies the list of recommended projects submitted by the

commission, the department of administration shall report and explain the changes to the infrastructure

advisory commission and the legislative finance committee at its next scheduled meeting.

(9) If the governor later determines that a project cannot be completed, the governor may authorize a

different project and provide a report to the infrastructure advisory commission and the legislative finance

committee. If the governor determines at any time that a project is identified not to be eligible based on the

American Rescue Plan Act guidance and, if completed, may result in a reduction in funds from the American

Rescue Plan Act or require the state to repay or refund money to the federal government pursuant to the

American Rescue Plan Act, the governor may authorize a different project and provide a report to the

infrastructure advisory commission and the legislative finance committee.

(10) References to "ARPA Section" mean references to section 9901 of the American Rescue Plan

Act of 2021, Public Law 117-2, which amends Title VI of the Social Security Act to include section 604.

(11) Up to 2% of the funds appropriated in this section may be allocated for administrative costs.

(12) Consent to construct as required by 18-2-102(1) is granted for projects funded with the

appropriation provided in this section.

(13) If a project constructed with the funds appropriated in this section requires additional operations

and maintenance budget authority as defined in 17-7-210, the requirements of 17-7-210 are considered to have

been met if the funding for any additional operations and maintenance expenses are included in the executive

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budget in the next legislative session.

Section 8. Communications advisory commission. (1) There is an American Rescue Plan

communications advisory commission.

(2) The commission consists of nine members, who must be appointed as follows:

(a) three senators, two from the majority party and one from the minority party, appointed by the

senate president;

(b) three representatives, two from the majority party and one from the minority party, appointed by

the speaker of the house; and

(c) three members, appointed by the governor.

(3) The commission shall review recommendations for funding communications projects and provide

recommendations to the executive on which projects should be funded.

(4) Appointed members of the commission shall be compensated and receive travel expenses as

provided for in 2-15-124 for each day in attendance at commission meetings or in the performance of any duty

or service as a commission member.

(5) The department of commerce shall staff the commission.

(6) Funding for the commission is allocated from the administrative costs allowed in [section 9].

(7) The commission shall hold its first meeting no later than June 11, 2021.

(8) The commission shall set its future meeting dates.

(9) The commission shall elect a chair from the legislative branch and a vice chair from the executive

branch.

Section 9. Appropriation for communications projects. (1) There are federal funds received

pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, appropriated to the office of budget and

program planning and allocated to the department of commerce for the fiscal year beginning July 1, 2020, for

communications projects. The appropriation is authorized to continue through the biennium beginning July 1,

2023.

Amount ARPA Section

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275,000,000 9901, 602

(2) Communication projects are those related to broadband infrastructure, including cell towers, or

public safety, if eligible.

(3) For projects awarded with these funds, a local government or private entity must provide matching

funds.

(4) References to "ARPA Section" mean references to section 9901 of the American Rescue Plan Act

of 2021, Public Law 117-2, which amends Title VI of the Social Security Act to include section 602.

(5) Up to 3% of the funds appropriated in this section may be allocated for administrative costs.

Section 10. Eligibility -- submission deadline -- preference -- approval of recommendations.

(1) The department of commerce shall certify that the projects listed in the recommendations are

necessary investments in compliance with the American Rescue Plan Act and all applicable guidance.

(2) (a) The advisory commission shall review the lists of recommended projects and issue a list of

recommended projects.

(b) The commission shall certify that the projects listed in the recommendations are necessary

investments in compliance with the American Rescue Plan Act and all applicable guidance.

(3) In preparing recommendations, preference must be given to projects that provide broadband access

to frontier, unserved, and underserved areas as designated by the department of commerce. Preference may

also be given to projects that provide a higher match rate.

(4) The recommendations of the advisory commission must be considered by the governor and

reviewed to comply with the American Rescue Plan Act and all applicable guidance. The governor may modify

recommendations and shall provide the list of approved projects to the communications advisory commission

and the legislative finance committee. If the governor modifies the list of recommended projects submitted by

the commission, the department of commerce shall report and explain the changes to the communications

advisory commission and the legislative finance committee at its next scheduled meeting.

(5) If the governor later determines that a project cannot be completed, the governor may authorize a

different project and provide a report to the communications advisory commission and the legislative finance

committee. If at any time the governor determines that a project is identified not to be eligible based on the

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American Rescue Plan Act guidance and, if completed, may result in a reduction in funds from the American

Rescue Plan Act or require the state to repay or refund money to the federal government pursuant to the

American Rescue Plan Act, the governor may authorize a different project and provide a report to the

communications advisory commission and the legislative finance committee.

Section 11. Economic transformation and stabilization and workforce development advisory

commission. (1) There is an American Rescue Plan economic transformation and stabilization and workforce

development advisory commission.

(2) The commission consists of nine members, who must be appointed as follows:

(a) three senators, two from the majority party and one from the minority party, appointed by the senate

president;

(b) three representatives, two from the majority party and one from the minority party, appointed by the

speaker of the house; and

(c) three members appointed by the governor.

(3) The commission shall review proposals for economic transformation and stabilization and workforce

development programs from the department of commerce, department of agriculture, and department of labor

and industry and provide a list of recommendations to the executive.

(4) The commission shall certify that each proposal submitted qualifies for funding pursuant to the

American Rescue Plan Act and all applicable guidance.

(5) Appointed members of the commission must be compensated and receive travel expenses as

provided for in 2-15-124 for each day in attendance at commission meetings or in the performance of any duty

or service as a commission member.

(6) Except for landlords receiving emergency rental assistance and entities receiving mortgage

assistance payments, the economic transformation and stabilization and workforce development advisory

commission shall require business and other organization applicants to disclose whether they received money

administered by the state from the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act) or

the Coronavirus Response and Relief Supplemental Appropriations Act of 2020 (CRRSA) and, if so, the

amount received and the basis and purpose of the award. In making its recommendations, the advisory

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commission shall take into account the fact that the applicant has already benefited from federal assistance

provided in response to COVID-19, but a previous CARES Act or CRRSA award does not preclude

consideration of an application.

(7) The department of commerce shall staff the commission.

(8) Funding for the commission is allocated from the administrative costs allowed in [section 12].

(9) The commission shall hold its first meeting no later than June 11, 2021.

(10) The commission shall set its future meeting dates.

(11) The commission shall elect a chair from the legislative branch and a vice chair from the executive

branch.

Section 12. Appropriation for economic transformation and stabilization and workforce

development. (1) There are federal funds received pursuant to the American Rescue Plan Act of 2021, Public

Law 117-2, appropriated to the office of budget and program planning for the fiscal year beginning July 1, 2020,

for economic transformation and stabilization grants and workforce development grants as follows. The

appropriation is authorized to continue through the biennium beginning July 1, 2023.

Amount ARPA Section

150,000,000 9901, 602

(2) $10 million of the funds appropriated in this section must be used for rapid retraining jobs training.

(3) The appropriation in this section may be used for eligible business transformation and stabilization

and workforce development programs, including but not limited to workforce training including rapid retraining,

return-to-work bonuses, or short-term wage subsidies, business assistance for hiring or rehiring employees,

business assistance for training or retraining employees, business technology grants, agricultural resiliency,

and business transformation or stabilization grants.

(4) Up to 3% of the funds appropriated in this section may be allocated for administrative costs.

Section 13. Eligibility -- preference -- approval of recommendations. (1) Applicable agencies

shall recommend programs and funding amounts to the advisory commission for review and comment for

funding under [section 12].

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(2) Within the programs established by the applicable agencies, businesses or other organizations

shall submit grant requests and supporting materials to the applicable state in order to be eligible for funding

under [section 12]. Applicants shall certify that each grant request is eligible under the American Rescue Plan

Act and all applicable guidance. The agency will review grant applications, rank grant applications, and issue a

list of recommended grants to the advisory commission established in [section 11].

(3) The advisory commission shall review the lists of recommended grants and other proposed uses of

the funds and issue a list of recommended grants and uses of funds to the executive.

(4) The applicable agency shall certify that each grant request is eligible under the American Rescue

Plan Act and all applicable guidance.

(5) The applicable agency is authorized to present multiple rounds of grant proposals to the

commission as needed.

(6) The advisory commission shall provide recommendations on the use of funds appropriated

pursuant to [section 16]. The department of commerce shall report to the advisory commission on loans made

in accordance with the federal requirements of the state small business credit initiative in [section 15].

(7) The recommendations of the advisory commission must be considered by the governor and

reviewed to comply with the American Rescue Plan Act and all applicable guidance. The governor may modify

recommendations and shall provide the list of approved programs and business and other organization

grantees to the legislative finance committee. If the governor modifies the list of recommended grants submitted

by the commission, the applicable agency shall report and explain the changes to the advisory commission and

to the legislative finance committee at its next scheduled meeting.

(8) If the governor later determines that a program or grant cannot be completed, the governor may

authorize a different program or grant and provide a report to the advisory commission and the legislative

finance committee. If at any time the governor determines that a program or grant is identified not to be eligible

based on the American Rescue Plan Act guidance and, if completed, may result in a reduction in funds from the

American Rescue Plan Act or require the state to repay or refund money to the federal government pursuant to

the American Rescue Plan Act, the governor may authorize a different program or grant and provide a report to

the advisory commission and the legislative finance committee.

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Section 14. Appropriations for housing and workforce training programs. (1) There are federal

funds received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, appropriated to the office

of budget and program planning and allocated to the department of commerce as follows for the fiscal year

beginning July 1, 2020. Appropriation authority is intended to be allocated to the following items. Appropriations

are authorized to continue through the biennium beginning July 1, 2023.

Amount Purpose ARPA Section

50,000,000 Mortgage Assistance 3206

11,459,768 HOME Program Supplemental Allocation 3205

152,400,000 Emergency Rental Assistance 3201

(2) For Emergency Rental Assistance, funds may be used to pay rent or rental arrears to any place

where someone pays on a periodic basis for shelter, including but not limited to nursing homes, senior assisted

living, group homes, low-income housing, workforce housing, transitional housing, and correctional facilities, if

eligible. If the American Rescue Plan Act and all applicable guidance allows for other uses of emergency rental

assistance funds, these funds may be used for those additional eligible purposes.

(3) The advisory commission established in [section 11] may provide recommendations to the

department on the use of funds in this section.

(4) The department of commerce is encouraged to use existing programs, where feasible, to implement

the programs provided for in this section.

Section 15. State Small Business Credit Initiative. There is appropriated to the department of

commerce $65 million in federal funds received pursuant to section 3301 of the American Rescue Plan Act of

2021, Public Law 117-2, for the State Small Business Credit Initiative. Funds are to be distributed in

accordance with the American Rescue Plan Act and applicable guidelines. The appropriation is for the fiscal

year beginning July 1, 2020, and is authorized to continue through the biennium beginning July 1, 2031.

Section 16. Appropriations to department of labor and industry. (1) There are federal funds

received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, appropriated to the department

of labor and industry for the fiscal year beginning July 1, 2020, that are authorized to continue through the

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biennium beginning July 1, 2023. Appropriation authority is intended to be allocated to the following items.

Amount Purpose ARPA Section

5,500,000 Office of Community Service 2206

5,200,000 Unemployment Administration 9031, 9032

(2) References to "ARPA Section" mean references to sections of the American Rescue Plan Act of

2021, Public Law 117-2.

Section 17. Appropriations to department of transportation -- grants. (1) There are federal funds

received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, appropriated to the department

of transportation for the fiscal year beginning July 1, 2020, that are authorized to continue through the biennium

beginning July 1, 2023. Appropriation authority is intended to be allocated to the following items.

Amount Purpose ARPA Section

600,000 Grants for State-Owned Airports 7102

2,777,812 Grants for Rural Transit 3401

(2) References to "ARPA Section" mean references to sections of the American Rescue Plan Act of

2021, Public Law 117-2.

Section 18. Health advisory commission. (1) There is an American Rescue Plan health advisory

commission.

(2) (a) The commission consists of:

(i) three senators, two from the majority party and one from the minority party, appointed by the

senate president;

(ii) four representatives, three from the majority party and one from the minority party, appointed by the

speaker of the house; and

(iii) three members appointed by the governor.

(b) For legislative appointments, legislators servings as members of the joint appropriations

subcommittee for health and human services from the 67th legislature are given preference.

(3) The commission shall recommend how funds allocated to the department of public health and

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human services are to be used.

(4) Appointed members of the commission must be compensated and receive travel expenses as

provided for in 2-15-124 for each day in attendance at commissions meetings or in the performance of any duty

or service as a commission member.

(5) The department of public health and human services shall staff the commission.

(6) Funding for the commission is allocated from the administrative costs allowed in [section 20].

(7) The commission shall hold its first meeting no later than June 11, 2021.

(8) The commission shall set its future meeting dates.

(9) The commission shall elect a chair from the legislative branch and a vice chair from the executive

branch.

Section 19. Deadlines -- meetings -- recommendations -- approval. (1) The commission shall

meet on or before June 11, 2021, and shall report its recommended programs and amounts for which funds

are appropriated in [section 20] to the director of the department of public health and human services. The

commission shall certify that each program recommended is for an eligible use under the American Rescue

Plan Act and all applicable guidance. The department shall also certify that each program recommended is for

an eligible use under the American Rescue Plan Act and all applicable guidance.

(2) The department shall provide, as requested, to the commission and to the office of budget and

program planning on implementation of programs funded in [section 20], including reporting on the expenditure

of funds and measurable outcomes of the programs.

(3) The recommendations of the advisory commission must be considered by the governor and

reviewed to comply with the American Rescue Plan Act and all applicable guidance. The governor may modify

recommendations and shall provide the list of approved programs and amounts to the health advisory

commission and to the legislative finance committee. If the governor modifies the list of recommended

programs and amounts submitted by the commission, the department of public health and human services shall

report and explain the change to the advisory commission and to the legislative finance committee at its next

scheduled meeting.

(4) If the governor later determines that a program cannot be completed, the governor, or the budget

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director under the direction of the governor, may authorize a different program and provide a report to the

health advisory commission and the legislative finance committee. If at any time the governor determines that a

program is identified not to be eligible based on the American Rescue Plan Act guidance and, if completed,

may result in a reduction in funds from the American Rescue Plan Act or require the state to repay or refund

money to the federal government pursuant to the American Rescue Plan Act, the governor, or the budget

director under the direction of the governor, may authorize a different program and provide a report to the

health advisory commission and the legislative finance committee.

Section 20. Appropriations to department of public health and human services. (1) There are

federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, appropriated to

the department of public health and human services for the fiscal year beginning July 1, 2020, and continuing

into the biennium beginning July 1, 2021. Appropriations are authorized to continue through the biennium

beginning July 1, 2023. Appropriation authority is intended to be allocated to the following items. References to

"ARPA Section" mean references to sections in the American Rescue Plan Act of 2021, Public Law 117-2.

Amount Program ARPA Section

11,000,000 SNAP 1101,1102

200,000 Commodity Supplemental Food Program 1104

900,000 Family Violence Prevention 2204

1,111,000 Child Abuse Prevention 2205

22,500,000 Vaccine Distribution and Supply 2301

143,400,000 Testing and Contact Tracing 2401

112,500,000 Child Care Block Grants 2201, 2202

1,700,000 State Veterans' Homes 8004

23,000,000 Public Health Workforce 2501

10,500,000 SAMHSA/Mental Health and Substance Use Disorder

Mental Health Block Grant 2701, 2702, 2703, 2705,

2706, 2707

31,775,000 LIHEAP/Water Assistance 2911, 2912

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1,000,000 Supporting Older Americans and Families 2921

930,000 Emergency Food and Shelter Program 4007, 4008

2,726,000 Pandemic Emergency Assistance 9201

1,130,000 WIC 1105

1,223,000 IDEA Infants and toddlers 2014

(2) There are federal funds received pursuant to section 9901 of the American Rescue Plan Act of

2021, Public Law 117-2, which amends Title VI of the Social Security Act to include section 602, appropriated

to the office of budget and program planning and allocated to the department of public health and human

services, if eligible, as follows:

(a) up to $15 million for nursing home and hospital-based swing bed payments; and

(b) up to $2.75 million for a provider rate study.

(3) For SNAP, the appropriation is to be used for the 15% benefit extension, for administration, and for

workforce training through existing programs in the department of labor and industry or through contracted

private sector vendors.

(4) For SAMHSA, it is the intent of the legislature that the executive consider use of the SAMHSA funds

above for the purposes of the HEART fund and for suicide prevention, including the use of the Utah model for

suicide prevention that includes social media outreach, and for potential use in the department of corrections.

(5) For Child Care block grants provided for in section 2201 of the American Rescue Plan Act of 2021,

Public Law 117, the department shall prioritize the use of funds o child care deserts for one-time equipment and

necessary infrastructure, property improvements, worksite child care, licensing, and employee training and

professional development.

(6) For nursing home and hospital-based swing bed payments, the department of public health and

human services will allocate $15 million to nursing home facilities and facilities with hospital-based swing beds

by the later of May 31, 2021, or 15 days after the receipt of federal funds from the American Rescue Plan Act.

The allocation will be made based on the number of medicaid patient days each facility had from January 1,

2020, through December 31, 2020. It is the intent of the legislature that no additional supplemental funds be

allocated to nursing homes and facilities with hospital-based swing beds.

(7) For the provider rate study, the department of public health and human services will study the

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impact of COVID-19 on providers and make recommendations to adjust rates, if necessary, to reflect impacts to

providers in an effort to maintain services.

Section 21. Allocation to the judicial branch. (1) There is appropriated $944,721 in federal funds

received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2 (602), to the office of budget

and program planning and allocated to the judicial branch to support court operations impacted by the

pandemic by streamlining the resolution of family law cases through early mediation and simplified proceedings

in judicial districts with heavy caseloads or in remote areas of the state, if eligible.

(2) Prior to implementation, the judicial branch shall submit a program plan to the office of budget and

program planning and the legislative finance committee, including effectiveness measures for the program and

information and explanation demonstrating that the program qualifies for funds under the American Rescue

Plan Act. The judicial branch shall also certify that the program is eligible under the American Rescue Plan Act

and all applicable guidance.

(3) The judicial branch shall provide quarterly reports to the office of budget and program planning, the

legislative finance committee, and, if House Bill No. 497 is passed and approved, to the judicial branch, law

enforcement, and justice budget committee, on the implementation of the program, the expenditure of funds,

and measurable outcomes of the program.

Section 22. Appropriations to office of public instruction and office of budget and program

planning. (1) There are federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law

117-2, appropriated to the office of public instruction for the fiscal year beginning July 1, 2020. Appropriation

authority is intended to be allocated to the following items. Appropriations are authorized to continue through

the biennium beginning July 1, 2023. References to "ARPA Section" mean references to sections in the

American Rescue Plan Act of 2021, Public Law 117-2.

Amount Purpose ARPA Section

343,817,312 Basic Allocation to School Districts 2001

3,400,000 Supplemental Allocation to School Districts 2001

120,000 Allocation to Other Educational Institutions 2001

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555,234 Education Leadership in Montana 2001

5,475,248 OPI Database Modernization 2001

1,910,096 Administration 2001

19,100,962 State Learning Loss 2001

3,820,192 State Summer Enrichment 2001

3,820,192 State Afterschool Programs 2001

9,241,420 Individuals with Disabilities Education Act 2014

(2) The appropriations to the office of public instruction in subsection (1) are restricted as follows:

(a) For Basic Allocation to School Districts, the amount allocated by the office of public instruction to

school districts must be as required by federal law. The office of public instruction shall distribute funds via

grants for expenses that are consistent with section 2001(e) of ESSER III.

(b) For Supplemental Allocation to School Districts, the office of public instruction shall allocate the

funds as follows:

(i) a school district with fewer than 6 quality educators receives $10,000;

(ii) a school district with 6 or more quality educators that receives less than an amount equal to

$10,000 times the number of the district's quality educators in the basic allocation receives an amount for every

quality educator plus an additional $50 for every quality educator that the district is below the statewide average

of quality educators for each district;

(iii) the amount for every quality educator must be calculated to use the $3.4 million appropriation; and

(iv) the office of public instruction shall distribute the funds in the same manner as used for the basic

allocation.

(c) For Allocation to Other Educational Institutions, an allocation to the school for the deaf and blind,

Pine Hills youth correctional facility, and the youth academy must be made on a per-quality-educator basis. The

office of public instruction shall distribute the funds in the same manner as used for the basic allocation.

(d) For Education Leadership in Montana, the office of public instruction shall create a system to build

the capacity of principals, teachers, and other leaders to ensure recovery of each school from the effects of the

covid-19 pandemic in a model that addresses the learning opportunities missed and needed by each person to

reach their full educational potential.

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(e) For OPI Database Modernization, funds must be used by the office of public instruction to repair,

improve, or replace existing data systems to respond to learning loss associated with the pandemic. Actions

taken must be consistent with 20-7-104.

(f) For Administration, funds must be used by the office of public instruction for administration of

ESSER III activities.

(g) For State Learning Loss, State Summer Enrichment, and State Afterschool Programs, funds may

be used at the discretion of the office of public instruction for purposes allowed by federal law and may include

grants to school districts. A school district may use these funds to provide allowable support to a special

education cooperative of which it is a member. Any funds granted to school districts must be distributed in the

same manner as used for the basic allocation.

(3) There is appropriated $$12.1 million to the office of budget and program planning for assistance to

nonpublic schools from the funds received pursuant to section 2002 of the American Rescue Plan Act, Public

Law 117-2.

(4) The office of public instruction shall provide quarterly status reports on the implementation of

programs, the expenditure of funds, and measurable outcomes of the program to the office of budget and

program planning, to the legislative finance committee, and if House Bill No. 497 is passed and approved, to

the education budget committee.

Section 23. Appropriations to state library, and Montana arts council. (1) There are federal funds

received pursuant to section 2021 of the American Rescue Plan Act of 2021, Public Law 117-2, in the amount

of $764,000 appropriated to the Montana arts council for the fiscal year beginning July 1, 2020. Appropriations

are authorized to continue through the biennium beginning July 1, 2023.

(2) There are federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law

117-2, appropriated to the state library for the fiscal year beginning July 1, 2020. Appropriation authority is

intended to be allocated to the following items. Appropriations are authorized to continue through the biennium

beginning July 1, 2023.

1,235,444 Hot Spot Lending Program and broadband infrastructure in libraries 2023

1,000,000 E-Learning Digital Content 2023

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(3) There is allocated $120,000 to the state library for newsline from the funds appropriated in [section

20] for Supporting Older Americans and Families, if eligible.

(4) Applicable agencies in this section shall provide quarterly status reports on the implementation of

programs, the expenditure of funds, and measurable outcomes of the program to the office of budget and

program planning, to the legislative finance committee, and if House Bill No. 497 is passed and approved, to

the education budget committee.

Section 24. Appropriation -- coronavirus local fiscal recovery fund. There is appropriated to the

office of budget and program planning $81.8 million to distribute pursuant to section 9901 of the American

Rescue Plan Act of 2021, Public Law, 117-2, which amends Title VI of the Social Security Act to include section

603.

Section 25. Audit appropriations. (1) Of the federal funds appropriated to the office of budget and

program planning in [sections 9 and 14] and appropriated to the department of commerce in [section 15], the

amount of $32,800 is reserved for the legislative audit division as a restricted and biennial appropriation for the

2023 biennium.

(2) Of the federal funds appropriated to the office of budget and program planning in [sections 2, 7, 12,

22, 24, and 27], the amount of $34,850 is reserved for the legislative audit division as a restricted and biennial

appropriation for the 2023 biennium as follows:

(a) American Rescue Plan Act testing, $24,600; and

(b) single audit administration and reporting, $10,250.

(3) Of the federal funds appropriated to the office of public instruction in [section 22], the amount of

$20,500 is reserved for the legislative audit division as a restricted and biennial appropriation for the 2023

biennium.

(4) Of the federal funds appropriated to the department of public health and human services in [section

20], the amount of $12,300 is reserved for the legislative audit division as a restricted and biennial appropriation

for the 2023 biennium.

(5) The legislative audit division will include estimated audit costs associated with [this act] in the

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estimated audit costs provided for in 5-13-402 for the 2025 biennium.

(6) As provided for in 17-7-141, agencies appropriated funds through [this act] will reserve enough

money from these federal funds to pay associated audit costs in the 2025 biennium.

Section 26. Modifications to appropriations and authorizations -- report of modifications or

changes. (1) The governor, or the budget director under the direction of the governor, is authorized to redirect

appropriations to other projects or appropriations or modify provisions within [this act] to ensure conformity with

the American Rescue Plan Act and applicable guidance.

(2) (a) If a proposed line-item transfer or a fund switch in [this act] exceeds $100,000, the budget

director shall submit an explanation and detailed description of the requested line-item transfer or fund switch to

the legislative fiscal analyst 30 days prior to the next scheduled meeting of the legislative finance committee.

(b) For the purposes of this section, the following definitions apply:

(i) "Line-item transfer" means the transfer of appropriation authority from one line-item appropriation to

a different line-item appropriation within the same section of [this act] or between any appropriations made in

[sections 14 through 25] of [this act].

(ii) "Fund switch" means a change in a line-item fund source or account to another fund source or

account.

(3) As federal guidance becomes available related to the use of "reduction in revenue" funds pursuant

to section 9901 of the American Rescue Plan Act of 2021, Public Law 117-2, amending Title VI of the Social

Security Act to include section 602(c)(1)(C), otherwise known as "revenue replacement funds", the office of

budget and program planning may calculate the amount of funds available pursuant to that section 602 and

recommend to the governor and the legislative finance committee an amount to be allocated among the

appropriations of 602 funds in [this act].

(4) The legislative finance committee shall review the proposed line-item transfer or fund switch or the

recommendation on the use of revenue replacement funds as provided in subsection (3), at the next meeting. A

representative of the office of budget and program planning shall be present at the meeting to discuss the

proposal or recommendation. The legislative finance committee may take up to 15 days following its meeting to

review and provide written comment on the proposal or recommendation. The office of budget and program

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planning may provide a response to the comments within 15 days of receiving the committee's comments.

(5) The governor, or the budget director at the direction of the governor, is authorized to adjust the

parameters of a program or service appropriated in [this act] to ensure conformity with applicable federal laws,

regulations, and guidance issued by federal agencies. If the parameters of a program are adjusted, the office of

budget and program planning shall notify the legislative finance committee of the change at its next scheduled

meeting. The legislative finance committee may take up to 15 days following its meeting to review and provide

written comment on the proposal. The office of budget and program planning may provide a response to the

comments within 15 days of receiving the committee's comments.

(6) If a proposed line-item transfer or a fund switch or a modification to the parameters of a program or

service is of an urgent nature, the budget director shall notify the legislative fiscal analyst as soon as possible

and the 30-day notice is not required. The legislative finance committee shall convene as soon as possible to

review the proposal and provide comment. The meeting may be held in a virtual setting.

(7) If additional funds are received by the state from the federal government above the levels

appropriated in [this act], House Bill No. 3, or House Bill No. 630, the approving authority as defined in 17-7-102

may authorize a budget amendment as defined in Title 17, chapter 7, part 4, and the requirements of 17-7-

402(1)(e) do not apply. If a federal appropriation is not included in [this act], House Bill No. 3, or House Bill No.

630, for a specific grant authorized by the federal government or in an amount sufficient to appropriate the

entire amount received from a federal agency to deploy funds authorized by the federal government, the

requirements of 17-7-402(1)(e) do not apply.

(8) Except as provided in subsection (6), the governor may not take any of the following actions until

15 days after the legislative finance committee has met to address a:

(a) line-item transfer or fund switch in excess of $100,000; or

(b) recommendation for the use of revenue replacement funds.

Section 27. Performance measures -- dissemination of information. (1) Agencies administering

programs funded by the American Rescue Plan Act shall develop plans to measure the effectiveness of the

programs.

(2) Agencies administering programs funded by the American Rescue Plan Act shall require grant

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applicants to state what they intend to accomplish if selected to receive funding. To the extent that the agencies

are able to determine generally applicable outcomes to determine the effectiveness of proposals submitted by

applicants, agencies shall require applicants to state how they will achieve those outcomes. Agencies may also

require applicants to state the outcomes that should be used to determine the effectiveness of their proposals

and how they will achieve those outcomes. Individual applicants who are not sole proprietorships, such as

individuals who participate in training programs or are recipients of benefits administered by the department of

public health and human services or the department of labor and industry, and business applicants that are

landlords only participating in one or both of the Emergency Rental Assistance Program and the Mortgage

Assistance Program or entities receiving mortgage payments, are exempt from the requirements in this

subsection.

(3) Agencies administering programs funded by the American Rescue Plan Act shall require periodic

reports from the applicants identified in the prior section to provide information necessary for the state to

comply with its federal and other compliance obligations, as well as any additional information necessary for the

agencies to confirm that applicants completed their proposals and achieved the intended outcomes. Where

feasible, quantitative data should be required.

(4) The office of budget and program planning shall promote the funding opportunities afforded in [this

act] and offer an online portal that directs prospective grantees to the various grant programs available

pursuant to [this act]. The online portal must also provide data and information on the website to provide

transparency in how funds were spent and identify grant recipients for businesses, local or tribal governments,

or nonprofit organizations.

(5) The office of budget and program planning shall provide quarterly reports to the legislative finance

committee throughout the interim on the implementation of [this act].

(6) (a) The office of budget and program planning is appropriated $3.7 million to provide oversight,

public interaction, reporting, transparency, and other services from funds received pursuant to the American

Rescue Plan Act of 2021, Public Law 117-2, which amends Title VI of the Social Security Act to include section

602.

(b) $200,000 of the amount appropriated in this subsection (6) is allocated to the legislative services

division for coordinating remote and hybrid meetings in the state capitol for state government in response to the

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increased demand for virtual meetings resulting from the COVID-19 pandemic.

Section 28. Reduction in funding -- health regulations. If a local government is awarded grant

funds appropriated in [section 2], the amount of the grant is reduced by 20% if that local government or any of

its authorized agents have health regulations related to COVID-19 that are more strict than those imposed by

the state in effect at the time the grant is awarded.

Section 29. Section 2-17-603, MCA, is amended to read:

"2-17-603. Government competition with private internet services providers prohibited --

exceptions. (1) Except as provided in subsection (2)(a) or (2)(b), an agency or political subdivision of the state

may not directly or through another agency or political subdivision be an internet services provider.

(2) (a) An agency or political subdivision may act as an internet services provider if:

(i) no private internet services provider is available within the jurisdiction served by the agency or

political subdivision; or

(ii) the agency or political subdivision provided services prior to July 1, 2001.

(b) An agency or political subdivision may act as an internet services provider when providing

advanced services that are not otherwise available from a private internet services provider within the

jurisdiction served by the agency or political subdivision.

(c) If a private internet services provider elects to provide internet services in a jurisdiction where an

agency or political subdivision is providing internet services, the private internet services provider shall inform

the agency or the political subdivision in writing at least 30 days in advance of offering internet services.

(3) Upon receiving notice pursuant to subsection (2)(c), the agency or political subdivision shall notify

its subscribers within 30 days of the intent of the private internet services provider to begin providing internet

services and may choose to discontinue providing internet services within 180 days of the notice.

(4) Nothing in this section may be construed to prohibit an agency or political subdivision from:

(a) offering electronic government services to the general public; or

(b) acquiring access to the internet from a private internet services provider in order to offer electronic

government services to the general public; or

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(c) providing funding for broadband service infrastructure projects consistent with the provisions of

[this act]."

Section 30. Maintenance of effort and equity for educational programs under the American

Rescue Plan Act of 2021. (1) (a) For fiscal years 2022 and 2023, if the budget director determines that the

state will not be in compliance with maintenance of effort requirements for higher education under section 317

of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 or section 2004 of the

American Rescue Plan Act of 2021, then the budget director shall:

(i) if the noncompliance is for fiscal year 2022:

(A) request that the approving authority transfer appropriation authority for the "appropriation

distribution" line in section E of House Bill No. 2 from fiscal year 2023 to fiscal year 2022 in an amount sufficient

to address the maintenance of effort requirements; and

(B) request a supplemental appropriation from the 2023 legislature to replace the transferred fiscal

year 2023 authority; and

(ii) if the noncompliance is for fiscal year 2023, request a supplemental appropriation from the 2023

legislature sufficient to address the maintenance of effort requirements.

(b) Increased appropriations pursuant to subsection (1)(a) must be distributed to units of the Montana

university system at the discretion of the board of regents of higher education.

(2) (a) For fiscal years 2022 and 2023, if the budget director determines that the state will not be in

compliance with either maintenance of effort or maintenance of equity requirements or both for elementary and

secondary education under section 317 of the Coronavirus Response and Relief Supplemental Appropriations

Act of 2021 or section 2004 of the American Rescue Plan Act of 2021, then the budget director shall direct the

superintendent of public instruction to provide either a maintenance of effort or maintenance of equity payment

or both to school districts in a manner and amount that minimizes the total amount of additional funding

provided by the state under this subsection (2).

(b) If in fiscal year 2022, the budget director determines that the state will not be in compliance with

either maintenance of effort or maintenance of equity as provided in subsection (2)(a), the superintendent of the

office of public instruction may move funds from program 09 “local activities” appropriations for the fiscal year

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beginning July 1, 2022, for distribution as provided for in subsection (2)(c).

(c) The superintendent of public instruction shall distribute the following payments from program 09

"local education activities" appropriations to the office of superintendent of public instruction in section E of

House Bill No. 2 as directed by the budget director:

(i) a maintenance of equity payment to specific school districts only as necessary and in the minimum

amount required to ensure compliance; and

(ii) a maintenance of effort payment to each school district based on the ratio that the sum of the

district's BASE budget and any maintenance of equity payment made to the district bears to the sum of

statewide BASE budget amount and the statewide total of any maintenance of equity payments made to school

districts.

(d) A school district receiving a payment under this subsection (2) shall deposit the money in the

district's miscellaneous programs fund and may use the money for general operations and instruction as

determined by the board of trustees.

(e) The budget director shall request a supplemental appropriation from the 2023 legislature to

replace or augment authority as necessary for the purposes of this section.

(3) The superintendent shall report to the legislative finance committee on:

(a) any calculations, determinations, authority transfers, and payments made pursuant to this section;

(b) the status of any waivers sought by the state to the maintenance of effort or maintenance of equity

requirements under section 317 of the Coronavirus Response and Relief Supplemental Appropriations Act of

2021 or section 2004 of the American Rescue Plan Act of 2021; and

(c) the need for supplemental appropriations due to payments made under this section.

Section 31. Notification to tribal governments. The secretary of state shall send a copy of [this act]

to each federally recognized tribal government in Montana.

Section 32. Notification of reduction or repayment of federal funds -- action for declaratory

judgment. If the budget director receives written notification from the federal government that a provision in

[this act] may result in a reduction in federal funds or require the state to pay or refund money to the federal

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government pursuant to the American Rescue Plan Act of 2021, the governor's office shall file an action for

declaratory judgment to determine the validity of the provision.

Section 33. Restrictions on use of funds for lobbying activities. The governing body of a state,

county, or municipality may not spend funds received in [this act] to influence or attempt to influence the

outcome of any legislation pending before the legislature.

Section 34. Long-range projects funding. (1) If any of the allocations for projects outlined in

[sections 35 through 38] are determined to be ineligible for funding through the American Rescue Plan Act,

funding for each ineligible project is appropriated for the project from the source of funding designated in the

introduced version of the respective long-range bill.

(2) If any portion of the allocations for projects outlined in [section 37 39] are determined to be

ineligible for funding through the American Rescue Plan Act, a like portion of funding for those projects shall be:

(a) appropriated from the capital developments long-range building program account provided for in

17-7-209 for projects funded through [section 1] of House Bill No. 14;

(b) appropriated from the treasure state endowment special revenue account provided for in 17-5-

703(3)(a) funded through [section 5] of House Bill No. 14; and

(c) appropriated from the natural resources projects state special revenue account provided for in 15-

38-302 funded through [section 9] of House Bill No. 14.

Section 35. Coordination instruction -- House Bill No. 5. (1) If both House Bill No. 5 and [this act]

are passed and approved, then the appropriations for the OPI MT Learning Center Civil Infrastructure Upgrades

and the UM FLBS Sewer Treatment Plant in [section 2(1)] of House Bill No. 5 are void and there is allocated to

the department of administration $2,050,000 for those projects from the funds appropriated in [section 2].

(2) If both House Bill No. 5 and [this act] are passed and approved, then the appropriations for the

following projects in [section 2(1)] of House Bill No. 5 are void and there is allocated to the department of

administration $6,710,000 for the following projects from the funds appropriated in [section 7]:

(a) MSU Haynes Hall Lab Ventilation Upgrades;

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(b) MSU BLGS Art Annex Safety and System Upgrades;

(c) UM-HC Donaldson Building HVAC Upgrades;

(d) MSU-N Auto Tech Building System Improvements;

(e) MSDB Card Lock System;

(f) MSU-N Brockmann Center HVAC and Energy Project; and

(g) COVID-19 remote and office workspace study and planning.

Section 36. Coordination instruction -- House Bill No. 6. (1) If both House Bill No. 6 and [this act]

are passed and approved, then [the introductory paragraph of section 1(1)] of House Bill No. 6 must read:

"(1) For the biennium beginning July 1, 2021, there is allocated to the department of natural resources

and conservation from federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law

117-2, section 9901 (amending Title VI of the Social Security Act to include section 602), from funds

appropriated in [section 2] of House Bill No. 632, up to:".

(2) If both House Bill No. 6 and [this act] are passed and approved, then [section 1(2)] of House Bill

No. 6 must read:

"(2) The amount of $4,500,000 is appropriated to the office of budget and program planning and

allocated to the department of natural resources and conservation from federal funds received pursuant to the

American Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security

Act to include section 602), the funds appropriated in [section 2] of House Bill No. 632, for the biennium

beginning July 1, 2021. The funds referred to in this subsection must be awarded by the department to the

named entities for the described purposes and in the grant amounts listed in subsection (4), subject to the

conditions set forth in [sections 2 and 3] and the contingencies described in the renewable resource grant and

loan program January 2021 report to the 67th legislature titled: "Governor’s Executive Budget Fiscal Years

2021-2023 Volume 6"."

Section 37. Coordination instruction -- House Bill No. 7. If both House Bill No. 7 and [this act] are

passed and approved, then [section 1(2)] of House Bill No. 7 must read:

"(2) The amount of $3,273,833 is appropriated to the office of budget and program planning and

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allocated to the department of natural resources and conservation from the natural resources projects state

special revenue account established in 15-38-302 and the amount of $429,000 is appropriated to the office of

budget and program planning and allocated to the department of natural resources and conservation from

federal funds received pursuant to the American Rescue Plan Act of 2021, Public Law 117-2, section 9901

(amending Title VI of the Social Security Act to include section 602, the funds appropriated in [section 2] of

House Bill No. 632 for grants to political subdivisions and local governments during the biennium beginning July

1, 2021. The funds in this subsection must be awarded by the department to the named entities for the

described purposes and in the grant amounts set out in subsection (4) subject to the conditions set forth in

[sections 2 and 3] and the contingencies described in the reclamation and development grants program report

to the 67th legislature titled: "Governor's Executive Budget Fiscal Years 2021-2023 Volume 5".

Section 38. Coordination instruction -- House Bill No. 11. (1) If both House Bill No. 11 and [this act]

are passed and approved, then [section 1(1)] of House Bill No. 11 must read:

"(1) There is appropriated to the office of budget and program planning and allocated to the department

of commerce $9,869,800 for the biennium beginning July 1, 2021, from federal funds received pursuant to the

American Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security

Act to include section 602, the funds appropriated in [section 2] of House Bill No. 632 to finance treasure state

endowment program grants authorized by subsection (2)."

(2) If both House Bill No. 11 and [this act] are passed and approved, then [section 5] of House Bill No.

11 must read:

"There is appropriated allocated $100,000 from federal funds received pursuant to the American

Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security Act to

include section 602), to the office of budget and program planning and allocated from the funds appropriated in

[section 2] of House Bill No. 632 to the department of commerce for the biennium beginning July 1, 2021, for

the purpose of providing local governments, as defined in 90-6-701, with emergency grants for infrastructure

projects, as defined in 90-6-701."

(3) If both House Bill No. 11 and [this act] are passed and approved, then [section 6] of House Bill No.

11 must read:

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"There is appropriated allocated $900,000 from federal funds received pursuant to the American

Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security Act to

include section 602), to the office of budget and program planning and allocated from the funds appropriated in

[section 2] of House Bill No. 632 to the department of commerce for the biennium beginning July 1, 2021, for

the purpose of providing local governments, as defined in 90-6-701, with the infrastructure planning grants for

infrastructure projects, as defined in 90-6-701."

(4) If both House Bill No. 11 and [this act] are passed and approved, then [section 7(1)] of House Bill

No. 11 must read:

"There is appropriated allocated $5,000,000 from federal funds received pursuant to the American

Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security Act to

include section 602), to the office of budget and program planning and allocated from the funds appropriated in

[section 2] of House Bill No. 632 to the department of natural resources and conservation for the biennium

beginning July 1, 2021, to finance the state’s share of regional water system projects authorized in subsection

(2) and as set forth in 90-6-715."

Section 39. Coordination instruction -- House Bill No. 14. (1) If both House Bill No. 14 and [this act]

are passed and approved, then there is appropriated from federal funds received pursuant to the American

Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security Act to

include section 602), to the office of budget and program planning and allocated from the funds appropriated in

[section 7] to the department of administration:

(a) $26,200,000 for the MT Veterinarian Diagnostic & Ag Analytical Labs;

(b)(a) $6,500,000 for Liquor Warehouse Expansion; and

(c)(b) $4,800,000 for the UM-W Block Hall Renovation.

(2) (a) If both House Bill No. 14 and [this act] are passed and approved, then there is allocated

$26,200,000 from the funds appropriated in [section 20] to the department of administration for the MT

Veterinarian Diagnostic & Ag Analytical Labs.

(b) If it determined that the project identified in (2)(a) is ineligible for funding from the appropriations in

[section 20], the allocation in (2)(a) is void and there is allocated $26,200,000 from the funds appropriated in

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[section 7] to the department of administration for the MT Veterinarian Diagnostic & Ag Analytical Labs.

(2)(3) If both House Bill No. 14 and [this act] are passed and approved, then [section 5(1)] of House

Bill No. 14 must read:

"(1) There is appropriated to the office of budget and program planning and allocated to the department

of commerce $13,707,898 for the biennium beginning July 1, 2021, from federal funds received pursuant to the

American Rescue Plan Act of 2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security

Act to include section 602), from the funds appropriated in [section 2] of House Bill No. 632 to finance treasure

state endowment program grants authorized by subsection (2)."

(3)(4) If both House Bill No. 14 and [this act] are passed and approved, then [section 9(1)] of House Bill

No. 14 must read:

"(1) There is appropriated from federal funds received pursuant to the American Rescue Plan Act of

2021, Public Law 117-2, section 9901 (amending Title VI of the Social Security Act to include section 602), to

the office of budget and program planning and allocated to the department of natural resources and

conservation from the funds appropriated in [section 2] of House Bill No. 632 up to $4,720,788 for grants to

political subdivisions and local governments for the biennium beginning July 1, 2021. The funds referred to in

this subsection must be awarded by the department to the named entities for the described purposes and in the

grant amounts listed in subsection (3), subject to the conditions set forth in [sections 11 and 12] and the

contingencies described in the renewable resource grant and loan program January 2021 report to the 67th

legislature titled: "Governor's Executive Budget Fiscal Years 2021-2023 Volume 6"."

Section 40. Coordination instruction. If both Senate Bill No. 297 and [this act] are passed and

approved:

(1) [Section 2(11) of Senate Bill No. 297] must read as follows:

"(11) "Underserved area" means an area where at least 10% of the delivery points have no access to

broadband service offered with a download speed range of at least 100 megabits per second and an upload

speed of at least 20 megabits per second or less with low latency."

(2) [Section 7 of Senate Bill No. 297] must be amended to include subsection (5)(n) which reads:

"(n) broadband service providers who have broadband service infrastructure already deployed in the

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project area."

Section 41. Coordination instruction – Senate Bill No. 297. If both Senate Bill No. 297 and [this

act] are passed and approved, the appropriation in [section 9] shall be used for the purposes set forth in Senate

Bill No. 297.

Section 42. Coordination instruction. If House Bill No. 630 and [this act] are passed and approved,

then [section 1 of House Bill No. 630], regarding a maintenance of equity payment, is void.

Section 43. Rulemaking authority. Applicable agencies may adopt rules to implement the grant

programs funded in [this act].

Section 44. Severability. If a part of [this act] is invalid, all valid parts that are severable from the

invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in

effect in all valid applications that are severable from the invalid applications.

Section 45. Effective date. [This act] is effective on passage and approval.

- END -

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I hereby certify that the within bill,

HB 632, originated in the House.

___________________________________________

Chief Clerk of the House

___________________________________________

Speaker of the House

Signed this _______________________________day

of____________________________________, 2021.

___________________________________________

President of the Senate

Signed this _______________________________day

of____________________________________, 2021.

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HOUSE BILL NO. 632

INTRODUCED BY F. GARNER, E. BUTTREY

AN ACT IMPLEMENTING THE AMERICAN RESCUE PLAN ACT; PROVIDING APPROPRIATIONS AND

ALLOCATIONS OF FEDERAL FUNDS AND OTHER FUNDS AVAILABLE BECAUSE OF THE RECEIPT OF

FEDERAL FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2021; ALLOWING APPROPRIATIONS TO

CONTINUE INTO THE 2023 AND 2025 BIENNIUMS; PROVIDING CONDITIONS AND RESTRICTIONS ON

THE USE OF FUNDS; CREATING ADVISORY COMMISSIONS RELATED TO INFRASTRUCTURE,

COMMUNICATIONS, ECONOMIC TRANSFORMATION AND STABILIZATION AND WORKFORCE

DEVELOPMENT, AND HEALTH; PROVIDING DEADLINES AND OTHER CONDITIONS RELATED TO THE

GRANT PROCESS; REQUIRING THE USE OF MATCHING FUNDS FOR CERTAIN GRANTS; PROVIDING

FOR A TECHNICAL ASSISTANCE TEAM TO ASSIST LOCAL GOVERNMENTS IN THE GRANT PROCESS;

PROVIDING FOR FUNDING FOR STATE CAPITAL PROJECTS AND GRANTS FOR WATER AND SEWER

INFRASTRUCTURE PROJECTS; PROVIDING MINIMUM ALLOCATION GRANTS TO LOCAL

GOVERNMENTS FOR QUALIFYING PROJECTS; PROVIDING FOR A GRANT PROCESS FOR ECONOMIC

TRANSFORMATION AND STABILIZATION PROJECTS AND WORKFORCE DEVELOPMENT; PROVIDING

GRANTS TO REGIONAL WATER AUTHORITIES; REQUIRING PERFORMANCE MEASURES AND

REPORTING ON PROJECTS; PROVIDING COORDINATION INSTRUCTIONS TO FUND QUALIFYING LONG-

RANGE PROJECTS WITH FEDERAL FUNDS; PROVIDING THE EXECUTIVE THE AUTHORITY TO MODIFY

AND REPORT MODIFICATIONS TO APPROPRIATIONS AND PARAMETERS OF PROGRAMS TO THE

LEGISLATIVE FINANCE COMMITTEE; PROVIDING FOR A REDUCTION TO CERTAIN GRANT AWARDS TO

LOCAL GOVERNMENTS BASED ON HEALTH REGULATIONS THAT ARE MORE STRICT THAN THOSE OF

THE STATE; PROVIDING FOR ADMINISTRATION AND AUDIT COSTS; ESTABLISHING EDUCATIONAL

MAINTENANCE OF EFFORT AND EQUITY PAYMENTS AND PARAMETERS FOR THEIR USE; PROHIBITING

THE USE OF AMERICAN RESCUE PLAN ACT FUNDS FOR LOBBYING ACTIVITIES; PROVIDING

RULEMAKING AUTHORITY; AMENDING SECTION 2-17-603, MCA; AND PROVIDING AN IMMEDIATE

EFFECTIVE DATE.